Weil Gotshal Willkie Farr Merger Talks Collapse
Weil Gotshal & Manges and Willkie Farr & Gallagher have ended discussions over a possible merger, adding pressure on Weil as senior partners plan moves to…
Weil Gotshal Willkie Farr merger discussions ended last night, closing off a potential combination that would have created a law firm with more than $4 billion in annual revenue. The collapse adds pressure on Weil Gotshal & Manges as senior partners head for other firms.
The two firms had signed a non-disclosure agreement to discuss a possible tie-up, according to two people familiar with the matter cited by Bloomberg Law. Some senior Weil partners were discussing the proposal with colleagues on Thursday, a person familiar with those discussions said. By the end of the day, the talks were off.
The scale of the proposed firm would have placed it among the five largest based in the US. But the deal did not proceed, while Weil continues to face departures among its top partners.
Senior partners prepare to leave Weil
Lyuba Goltser, co-managing partner of Weil’s corporate department, plans to join Sidley Austin, according to a person familiar with the move. Davis Polk & Wardwell plans to bring on appellate litigator Drew Tulumello, another person said.
The Wall Street Journal reported that Paul Weiss is hiring Caroline Zalka, a securities litigation partner. Tulumello and Zalka are members of Weil’s management committee.
The moves add to departures that have unsettled the firm in recent weeks, with more expected to be formally announced. Michael Aiello, Weil’s corporate department leader, announced in September that he would leave for Cravath, Swaine & Moore.
There is no word on whether Weil has opened merger discussions with another firm or whether its leaders plan to pursue a different combination. Bloomberg Law said spokespeople for Weil and Willkie did not respond to requests for comment.
The departures carry a risk beyond the loss of individual partners: they can prompt colleagues to leave because they worry about being left at a weakened firm. David McGowan, a law professor at the University of San Diego, distinguished that dynamic from ordinary moves for better opportunities.
“Lateral movement for ‘I can do better’ is very common,” McGowan said. “And the run on the bank metaphor happens when ‘I can do better’ reaches a scale at which it turns into ‘I don’t want to be left holding the bag.’”
Merger talks can revive
The end of negotiations does not necessarily rule out a future deal, Bloomberg Law noted. Some law firm combinations have followed talks that initially fell apart.
Shearman & Sterling broke off discussions with Hogan Lovells in 2023 before tying up with Allen & Overy. Kaye Scholer and Arnold & Porter reportedly ended discussions in 2016, then revived talks and merged.
Large law firms in the US and UK have been exploring mergers as they seek greater scale and compete for high-end corporate partners. Weil’s proposed combination with Willkie would have produced annual revenue above $4 billion, according to Bloomberg Law.
For Weil, the immediate question is whether further partner exits will follow and whether the firm will seek another merger partner. The source report said additional departures were expected to be formally announced.
Source: news.bloomberglaw.com
